Yeah, if my TiBook can run Pro Tools without a hitch, you'll be fine.
In fact, I'm upgrading to a Black MacBook and maxing it out. Using it more for the portability than recording, but when I need to do mobile recording, it'll rock.
Yes, max it out with 2GB RAM (since you do have integrated video) and get the 2GHz processor. If you want to save some cash, get it with 512 MB RAM and go to
http://www.macsales.com for the RAM...$215 as opposed to Apple's ridiculous prices for that upgrade.
Also, I would recommend getting 100GB or 120GB internal drive for your personal stuff. However, definitely get yourself a 160GB or larger external FW400 drive 7200rpm. You never want to record to the system drive.